Ethena shared plans to allocate a part of its $235 million USDT stablecoin collateral and $45 million surplus reserve in yield-generating real-world asset (RWA) offerings.

BlackRock’s BUIDL fund pitched for a $34 million allocation, while Steakhouse Financial applied with a lending vault on Morpho Blue.

Ethena, the protocol behind the $3.4 billion yield-generating “synthetic dollar” token USDe, is planning to invest a part of its reserves in tokenized real-world assets (RWA), and BlackRock’s BUIDL fund is among the first applicants to throw its hat in the ring.

The protocol laid out plans in a July 16 governance post to allocate a part of its $235 million USDT holdings, roughly 7% of collateral assets, and $45 million surplus reserve. Ethena’s token provides yield to investors by buying spot bitcoin {{BTC}} and ether {{ETH}} and paralelly selling, or shorting, perpetual swaps of the assets on crypto exchanges, harvesting the funding rate.

BlackRock’s BUIDL, a money market fund represented by an Ethereum-based token, seeks a $34 million allocation from Ethena’s $45 million reserve, according to a Monday post by Jonathan Espinosa from tokenization platform Securitize, BUIDL’s distribution partner.

Steakhouse Financial Morpho also applied on Monday with a USDC lending vault on DeFi platform Morpho Blue, which is overcollateralized by wrapped bitcoin (wBTC), wrapped staked ether (wstETH) and Backed’s tokenized Treasury Bills product (bIB01).

Mountain Protocol, issuer of the USDM yield-bearing stablecoin, also signaled interest in applying, with founder Michael Carrica replying last week to the governance post that the protocol “will be presenting a proposal in the coming days.”

All prospective applicants will need to post their proposal publicly on the governance forum, Guy Young, founder of Ethena Labs, the developer company behind the protocol, said in an email.

Ethena’s open competition is the latest example of tokenized RWAs getting increasingly used in the crypto-native, decentralized finance (DeFi) world. Most recently, DeFi lender MakerDAO announced plans to invest $1 billion of backing assets of the DAI stablecoin in tokenized Treasury products, while ArbitrumDAO, an ecosystem development organization of Ethereum layer-2 Arbitrum, finalized a similar contest to allocate the equivalent of 35 million of ARB tokens in tokenized offerings.

Read more: MakerDAO’s $1B Tokenized Treasury Investment Plan Draws Interest from BlackRock’s BUIDL, Ondo, Superstate